MONROE - The City of Monroe will look at the possibility of saving some money on its $20 million wastewater treatment plant upgrade, in a special session of the Common Council at 5:30 p.m. Jan. 22.
Under the current timeline, bidding on the project is set to begin late this month, with a construction start date in March.
But at a meeting of the board of Public Works on Monday, Alan Eckstein, director of water utilities, said the utility could save $300,000 annually for 20 years, starting in 2018, by completing the upgrade in two phases.
By splitting the upgrade project, Eckstein said, the utility could apply more of its money-on-hand and still retain a favorable debt load after the first bond is issued.
"Borrow less now, and borrow the rest later," he said.
Construction in two time frames would produce "a huge savings," but could also add a risk, said Reid Stangel, board chairman.
"Is the treatment plant able to hold on for the second phase?" he added. "Will 2018 be too late?"
Eckstein said without the project split, he will have to make deeper cuts to his budget to "maintain a decent business climate."
"I don't want to follow up an 18 percent increase (in October) with two percent per year," he added.
Stangel asked for the special council session, not only for the council to consider changing the time table, but also for input from "the people who work in the trenches" - the plant employees.
Time is of the essence for the council to make its decision.
Stangel directed AECOM, the engineering firm planning and designing the upgrade, to "stay the course" with its schedule to ready the project for bidding by Jan. 24.
Mayor Bill Ross noted that some large industrial companies in Monroe, including Saputo where he is manager, are "in limbo" with creating their fiscal budgets without a solid indication of the utility's proposed rates.
"Saputo was in shock at 18 percent," Ross said. "But we don't want the wastewater treatment plant to crash and burn either."
Right now, the city is in a favorable bidding climate with predictable financing from a Clean Water Fund state-subsidized loan program, said Jay Kemp, project manager with AECOM. A large, one-time project will produce a large field of contractors competing for bids and produce savings with "economy of scale," he added.
The City of Monroe Wastewater Utility implemented an 18 percent sewer rate increase in early October 2012, approved by the council March 6. The previous rate increase was in February 2009. The council raised the rate because of an anticipated deficit resulting primarily from debt obligations associated with improvements to the plant.
The 2013 upgrade project is expected to add about $970,000 annually to the current $260,000 debt costs. The current debt comes from sewer projects in 1992, 1997 and 2002.
Under the current timeline, bidding on the project is set to begin late this month, with a construction start date in March.
But at a meeting of the board of Public Works on Monday, Alan Eckstein, director of water utilities, said the utility could save $300,000 annually for 20 years, starting in 2018, by completing the upgrade in two phases.
By splitting the upgrade project, Eckstein said, the utility could apply more of its money-on-hand and still retain a favorable debt load after the first bond is issued.
"Borrow less now, and borrow the rest later," he said.
Construction in two time frames would produce "a huge savings," but could also add a risk, said Reid Stangel, board chairman.
"Is the treatment plant able to hold on for the second phase?" he added. "Will 2018 be too late?"
Eckstein said without the project split, he will have to make deeper cuts to his budget to "maintain a decent business climate."
"I don't want to follow up an 18 percent increase (in October) with two percent per year," he added.
Stangel asked for the special council session, not only for the council to consider changing the time table, but also for input from "the people who work in the trenches" - the plant employees.
Time is of the essence for the council to make its decision.
Stangel directed AECOM, the engineering firm planning and designing the upgrade, to "stay the course" with its schedule to ready the project for bidding by Jan. 24.
Mayor Bill Ross noted that some large industrial companies in Monroe, including Saputo where he is manager, are "in limbo" with creating their fiscal budgets without a solid indication of the utility's proposed rates.
"Saputo was in shock at 18 percent," Ross said. "But we don't want the wastewater treatment plant to crash and burn either."
Right now, the city is in a favorable bidding climate with predictable financing from a Clean Water Fund state-subsidized loan program, said Jay Kemp, project manager with AECOM. A large, one-time project will produce a large field of contractors competing for bids and produce savings with "economy of scale," he added.
The City of Monroe Wastewater Utility implemented an 18 percent sewer rate increase in early October 2012, approved by the council March 6. The previous rate increase was in February 2009. The council raised the rate because of an anticipated deficit resulting primarily from debt obligations associated with improvements to the plant.
The 2013 upgrade project is expected to add about $970,000 annually to the current $260,000 debt costs. The current debt comes from sewer projects in 1992, 1997 and 2002.